After six years of collaborating with the University of Sydney on a synthetic bone substitute, Allegra Orthopaedics (ASX:AMT) today acquired the intellectual property (IP) and finished the day up over 500 per cent.

Allegra sells off-the-shelf implants and is researching synthetic bone for spinal cages and kangaroo tendons as replacements for dodgy human ones.

While it has been in this field for several years it has experienced financial struggles, slow research and a revolving door of executives.

But since 2014 it has been collaborating with Sydney University on a novel additive called Sr-HT-Gahnite. This material strengthens bones to ensure regeneration and is 3D-printable.

The company held an exclusive license from Sydney Uni to use the technology but today, in return for 4.8 million shares (worth $2.5m after today’s surge), it is the new owner of the technology.

CEO Jenny Swain said she was excited about the acquisition of the patents and anticipated utilising the IP to commercialise new products, particularly implants.

Its first product will be an interbody cervical spine cage. This product would be able to regenerate bones under spinal load conditions and ultimately absorb itself into the body.

“We believe this material will enable us to create and commercialise highly desirable plants with unique properties that we can bring to market,” Swain said.

“The acquisition of these patents is recognition of our ability to identify and work collaboratively with academic organisations such as the University of Sydney to bring innovative products to market and strengthens our company’s innovative capacity.”

Shares opened at 8.8c but in the last hour of trade rocketed to 53c.